Oil prices fell nearly 4 percent to below $70 a barrel on Monday as fear of a curb in Chinese bank lending dented optimism about the pace of economic recovery and a potential rebound in global energy demand.

Oil prices slipped below $72 on Friday as losses on Wall Street and gains in the U.S. dollar dragged on commodities markets.

In late January, Exxon Mobil Corp. (NYSE: XOM), the world’s most ubiquitous oil giant, capped off a whipsaw year in the global oil markets by reporting net income of $45.2 billion, an all-time record for corporate profits that shattered the former record it had set a year before.

Oil prices rose for the third consecutive day on Friday, nearing $72 a barrel, as rebel attacks in Nigeria hit output from the OPEC-member country and economic optimism propelled equities markets higher.

“Global Demand for Oil to Plummet,” screams a recent Financial Times headline.   Huh?  No it won’t.  Who are they trying to kid?

U.S. oil price rises above $36… UAE follows OPEC deals with Jan, Feb cuts… Expectations of slowing energy demand weigh

Crude for July delivery jumped more than $5 per barrel in New York yesterday (Wednesday) to close at $136.38 per barrel on declines in U.S. supplies and refinery activity.

US airlines are forecast to lose a record $7.2 billion this year, in part because most use gas-guzzling elderly Boeing 767s as opposed to newer, more fuel-efficient planes common in European fleets.

American Airlines, Continental and Delta have all announced cutbacks due to rising fuel costs.

Consumers are also being squeezed. USA Today reports that summer airfares in the US are set to rise by as much as four times thanks to spiraling oil prices.

“The sector-wide downturn is pretty textbook,” says Theo Casey in Fleet Street Daily.

Good lord, haven’t we already had enough preening and posturing by clueless lawmakers over the alleged “manipulation” of the oil markets?

Both gold and silver did virtually nothing on Thursday until shortly after London opened. Then (just like Wednesday) a sell-off began in both metals which lasted until shortly after the Comex opened in New York.